What is the cure period for a Byrider franchisee to comply with the agreement after written notice for failing to purchase or maintain required insurance?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
or other criminal misconduct which is directly related to the operation of the Franchisee's Business; or
- (7) A termination of any other franchise agreement between Franchisee (or any of its affiliates) and Company.
B. Termination After Opportunity to Cure.
- (1) The Company shall have the right to terminate this Agreement immediately if the Franchisee fails to pay the Company (or their affiliates) any amounts due and does not cure the failure within ten (10) business days after written notice of the failure to the Franchisee.
- (2) The Company shall have the right to terminate this Agreement immediately if the Franchisee fails to comply with this Agreement in any of the following manners and does not cure the failure within thirty (30) days after written notice of the failure to the Franchisee:
- a) The Franchisee voluntarily or otherwise abandons the Franchisee's Business by failing to operate it for a period of three (3) consecutive business days or more during the Term, unless the Franchisee's Business has been closed for a purpose approved by the Company;
- b) The Franchisee fails to purchase or maintain the insurance required by this Agreement or fails to reimburse the Company for purchasing of such insurance on the Franchisee's behalf;
- c) The Franchisee interferes with the Company's right to inspect the Franchisee's Business or observe its operation, as provided in Section 6.10 of this Agreement;
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, a franchisee typically has thirty days to cure a failure to purchase or maintain required insurance after receiving written notice. However, there is an exception: the agreement can be terminated immediately if the franchisee fails to purchase or maintain insurance, which is considered a material breach.
Despite the possibility of immediate termination, the franchisee has the right to cure the default within ten days from notification by the franchisee's insurance company that the insurance has lapsed. This suggests that while Byrider can act quickly, the franchisee has a short window to reinstate the insurance coverage and avoid termination.
It is important to note that Byrider has the right to modify the minimum insurance coverage limits required, and the franchisee is obligated to purchase insurance conforming to the new standards immediately upon receiving written notice. The franchisee must also routinely furnish Byrider with copies of their Certificate of Insurance or other evidence of maintaining coverage and paying premiums.